What are Support & Resistance?
Support is a price level where buying pressure is strong enough to stop price from falling further — think of it as a floor. Resistance is a price level where selling pressure stops price from rising further — a ceiling.
These levels form because traders have memory. If price bounced strongly from 1.1000 three times before, thousands of traders will expect it to bounce again the fourth time — and many will place buy orders there, making it a self-fulfilling prophecy.
Support & Resistance Flip (Role Reversal)
One of the most powerful concepts: when price breaks through a resistance level and closes above it, that resistance level BECOMES a new support level — and vice versa.
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Breakout above resistance → resistance becomes support
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Breakdown below support → support becomes resistance
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These flipped levels are extremely high-probability trade areas
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Look for a retest of the flipped level for the best entry
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The stronger the original level, the stronger the flipped zone
Pro Tip: The "flip zone" is where institutional traders re-enter their positions. Wait for price to return and retest a flipped S/R zone before entering.
How to Draw S/R Levels Correctly
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Switch to a Line chart to see closes only — this removes noise
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Start from the Weekly chart, then H4, then H1
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Mark levels where price has reversed multiple times (at least 2 touches)
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Use zones not lines — drag a rectangle to mark the area
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Focus on levels that are clearly visible even on zoomed-out charts
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Delete levels that are too close together (within 20-30 pips)
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Prioritize the most recent levels over old ones
Types of Support & Resistance